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[Exclusive] Bought as Domestic... Core Parts of 'Hurom' Sold for 1 Trillion Are Made in China

"Juicer Motor Determines Performance and Durability, Like Motors in Cars"
Even Without Legal Issues for 'Domestic' Labeling, Criticism of 'Consumer Deception' Is Inevitable
Hurom: "Only the Motor Is Made in China, All Other Parts Are Domestic"

[Exclusive] Bought as Domestic... Core Parts of 'Hurom' Sold for 1 Trillion Are Made in China Kim Young-ki, Chairman of Hurom. [Photo by Hurom]

[Asia Economy Reporter Kwak Min-jae] Hurom (Chairman Kim Young-gi·photo), the No. 1 juice extractor (juicer) company in Korea, has been confirmed to use Chinese-made motors as core components of its juice extractors. Hurom, a juicing appliance specialist, has emphasized that it produces only "Made in Korea" products by assembling parts from domestic partners and manufacturing all juice extractors domestically, so controversy is expected. Hurom produces and sells juicing appliances as well as cooking and household appliances, recording sales of around 130 billion KRW last year.


According to related industries on the 28th, many products, including Hurom’s premium juice extractor product line (model names H310, H300, M100), are equipped with Chinese-made motors. Hurom’s juice extractors have a price lineup ranging from the ‘H310’ targeting 1-2 person households, to the existing premium products ‘Hurom Easy’ and ‘H300’, up to the high-end product ‘M100’, which is classified as premium and sells for 599,000 KRW.


Regarding this, a Hurom official explained, “Among all juice extractor parts, only the motor is Chinese-made, and the motor accounts for less than 5% of the total materials, so its proportion is not large.” According to foreign trade management regulations, if the first four digits of the HS code are the same, the ‘Made in Korea’ label is allowed if the domestic cost ratio exceeds a certain threshold.


However, since the motor is a key component in appliances like juice extractors, criticism that Hurom, which has emphasized its products as domestic, has deceived consumers seems inevitable.


[Exclusive] Bought as Domestic... Core Parts of 'Hurom' Sold for 1 Trillion Are Made in China Source: Capture from Hurom official website

Industry insiders explain that the motor in juicing appliances like juice extractors is a core component that determines the product’s performance and lifespan. An industry official said, “The juice extractor motor corresponds to the engine in a car, determining the lifespan and durability of the juice extractor, accounting for 60-70% of the importance of all parts.” The industry adds, “Motors contain expensive raw materials such as copper, making up 40-50% of the total production cost. Using Chinese-made motors is expected to reduce production costs by 20-30% compared to domestic ones.”


The problem is that Hurom has consistently emphasized that it uses parts from domestic partners and produces all juice extractors domestically as ‘Made in Korea’ products. Hurom is known to assemble and produce 26 types of core juice extractors and 9 types of green juice machines at its factory in Gimhae, Gyeongnam, using parts from nearby partners.


Even within the related industry, there is skepticism about Hurom’s use of Chinese-made motors. Hurom has steadfastly insisted on domestic production and strived to maintain high quality despite the influx of Chinese counterfeit juice extractors.


Founded in 1974 by Chairman Kim Young-gi, Hurom developed slow juicing technology and began full-scale production of juice extractors in 2008, growing to record sales of 230 billion KRW in 2015. Last year, cumulative sales of juice extractors surpassed 1 trillion KRW, with cumulative sales exceeding 10 million units. Currently, the company is managed by Chairman Kim’s eldest son, CEO Kim Jae-won (41).


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

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